After talks with Airtel Wynk didn’t work out, Times Internet decided to merge Gaana with its subsidiary, Entertainment Network India Limited (ENIL), in December 2023. Gaana was bought for Rs 25 lakh, according to ENIL’s filings with the National Stock Exchange (NSE). ENIL, which is backed by Bennett Coleman, runs the popular FM radio station ‘Radio Mirchi.’
Gaana had raised over $200 million in the past and was valued at around $580 million. Times Internet used to own most of Gaana, while Tencent held about 35% until September 2020. To keep Gaana running, Times Internet has been regularly providing funds. In July 2023, they gave Gaana Rs 100 crore as a loan, which was later converted into shares.
Recently, Times Internet agreed to lend up to Rs 10 crore more to Gaana. ENIL’s CEO, Yatish Mehrishi, mentioned that the company also invested Rs 15 crore during the first quarter of FY25. Due to restrictions on investments from neighboring countries, Gaana received loans totaling $90 million in 2020 and 2021.
Gaana’s revenue has dropped significantly, falling by over 80% to Rs 12.5 crore in the last fiscal year (FY24). After the merger, ENIL put Gaana behind a paywall and doubled the subscription fee to Rs 599. This brought in Rs 9.5 crore in revenue in the last quarter of FY24. ENIL’s overall revenue also decreased by 25.79% from the previous quarter to Rs 113.46 crore, and the company reported a loss of Rs 5.45 crore in the first quarter of FY25.
Gaana has also seen changes in its leadership. The long-time CEO, Prashan Agarwal, was replaced by Sandeep Lodha in mid-2021, and Lodha left in July 2023. Currently, Gaana is managed by ENIL’s CEO, Yatish Mehrishi.
